August 21, 2008

Samson Oil & Gas Provides Operational Advice on Sabretooth

Sabretooth Prospect - Davis Bintliff #1 (Working Interest 12.5%, Net Revenue Interest 9%)

On the 21st of August at 0600 hours, the Davis Bintliff #1 well was at a measured depth (MD) of 14,125 feet, drilling ahead in 6 1/2 inch hole, and still above the primary target.

Mud log data suggest that two thin sandstones were intersected at 14,000 and 14,050 feet MD, and returned credible gas shows.

Since our last report, a 7 5/8 inch liner was set as planned at 13,721 feet (MD) and, prior to that, open hole logs were run. During that operation, some time was lost while recovering the logging tools and to achieve a remedial cement job on the liner seal. While drilling operations are now back to normal and these kinds of delays are not unusual in this type of well, the well is now slightly behind schedule.

The Davis Bintliff #1 well is located in Brazoria County, in Texas' onshore Gulf Coast producing region. The prospect was delineated by a comprehensive 3D seismic grid, which resulted in a significant off-setting gas/condensate discovery with an amplitude response identical to that observed at the Davis Bintliff #1. The proposed well has an estimated contingent recoverable volume of 25 Bcfe, in which Samson has a 12.5% working interest.

About Samson Oil & Gas Limited

Samson Oil & Gas Limited (AMEX: SSN) (ASX: SSN) owns working interests in a number of producing American oil and gas wells and a substantial inventory of proved and undeveloped reserves and exploration concessions located in various productive basins in central and west-central USA. Samson's Ordinary Shares are traded on the Australian Securities Exchange under the symbol "SSN." Samson's American Depository Receipts are traded on the American Stock Exchange under the symbol "SSN," and each ADR represents 20 fully paid Ordinary Shares of Samson.

 For and on behalf of the board of SAMSON OIL & GAS LIMITED  TERRY BARR Managing Director 

Statements made in this release that are not historical facts may be forward-looking statements, including but not limited to statements using words like "may,""believe,""expect,""anticipate,""should" or "will." Actual results may differ materially from those projected in any forward-looking statement. There are a number of important factors that could cause actual results to differ materially from those anticipated or estimated by any forward-looking information. The drilling operations are expected to be conducted in the planned manner, however, drilling could be delayed or curtailed and may vary from current expectations since various factors, including but not limited to equipment availability or breakage or other unanticipated difficulties, could delay those events and change those expectations. A description of the risks and uncertainties that are generally attendant to Samson and its industry, as well as other factors that could affect Samson's financial results, are included in the Company's registration statement and report to the Securities and Exchange Commission on Form 20-F, which is available at